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How to construct a short sale purchase agreement

The purchase agreement drawn up for a short sale has a lot in common with a traditional home purchase agreement. However, it may be best for those buying property in Illinois to have an attorney create a custom agreement. This is because those found online or written by the buyer run the risk of not being in adherence with state law.

It is also not a good idea to use the same agreements that local real estate agents do. This can be true even for those who choose to use a real estate agent when buying a short sale property. In most cases, they are designed to be fair to both parties involved instead of being in the buyer's best interest. Of course, it is possible that the seller will want to make changes to the agreement, and a buyer can review the revised terms with his or her attorney.

To be considered a valid purchase agreement, it must adhere to state law and be signed by those of sound mind. It should also include any contingencies that the buyer requires before the deal can be completed. Contingencies could include time to discover any problems with the home's title. Finally, it should determine when the seller would leave the home and define document delivery obligations for both parties.

In a short sale, a homeowner who may be at risk of defaulting on his or her mortgage asks the lender for permission to sell as opposed to starting foreclosure proceedings. For a buyer, it may represent an opportunity to acquire a quality asset for less than its market value. However, it may be worthwhile to have an attorney review a purchase offer or work with the lender to negotiate terms of the sale.

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Schlueter Ecklund & Davitt
4023 Charles Street
Rockford, IL 61108

Toll Free: 800-207-5133
Phone: 815-516-8264
Fax: 815-229-0733
Rockford Office Location